According to leaked documents seen by The Verge, Barnes & Noble is launching an 8GB version of its Nook Tablet this week. That drop in capacity means one thing: it's planning to match, or undercut, the Kindle Fire.

"All we know for sure is that Walmart plans to launch this new device at 12:01AM on Wednesday, February the 22nd, and deliveries of the 8GB Tablet should be arriving in stores already."

Currently the 16GB Nook Tablet retails at $249, which is $50 more than the Kindle Fire. If a drop in capacity means that Barnes & Noble can match—or,even better, undercut—the Fire on price, it can expect to sell a whole heap more. [The Verge]